Bay Networks and Unique Broadband Systems Agree to Deliver High Speed Communication Systems in the Emerging Fixed Broadband Wireless Market.

SANTA CLARA, Calif.--(BUSINESS WIRE)--June 17, 1998--

The Benefits of Business Class IP Services and High Speed Broadband Access without the Cable is Available Now to Bay Networks / Unique Customers

Bay Networks, Inc. (NYSE:BAY) and Unique Broadband Systems, Inc. (VSE:UBS) today announced an agreement to provide an interoperable high speed data access solution that uses Bay Networks cable modems and Unique Broadband Systems wireless technology. Broadband Wireless yields immediate economic benefits to carriers because of its quick deployment (no cabling), scalability, and lower network maintenance and management costs. It also enables wireless carriers to offer, and businesses to take advantage of, a wireless high speed access medium that supports voice, video and data as well as other emerging Business Class IP applications. This Bay Networks / Unique Broadband Systems Broadband Wireless solution was demonstrated in May at the Canadian Wireless '98 tradeshow in Toronto and is available now.

"We are expecting the Broadband Wireless market to grow rapidly in the near future," said Murray Grossner, executive vice president and director of research for Canaccord Capital Corporation. "This agreement between Bay Networks, a leader in data networking / Broadband and Unique Broadband Systems, a leader in Wireless communications, can only be seen as a positive and legitimizing step for the technology."

The Bay Networks cable modems and the Unique Broadband Systems air interface products can be offered as an interoperable solution and can be integrated into the Local Multipoint Distribution Service (LMDS)/Local Multipoint Communication Service (LMCS) carrier networks to enable high-speed wireless remote access services. This seamless integration of Bay Networks' Broadband solutions and Unique Broadband Systems wireless technologies is further enhanced by Bay Networks' ability to offer System Integrators a complete end-to-end data networking foundation that provides advanced switching solutions, leading edge access solutions, a constantly expanding expertise in IP services for scalability and flexibility, and worldclass network management featured in the Bay Networks Optivity(R) application, the industry's leading network management solution.

"Bay Networks has been championing carrier-class broadband networks, both wireline and wireless. The Bay Networks / Unique Broadband Systems relationship marries our two companies' excellence in broadband data communications and wireless networking," said Karl May, vice president and general manager of the Broadband Technology Division at Bay Networks. "To our cable customers, and to carriers worldwide, particularly in emerging markets, we can offer a complete solution for both the wireless local loop and long-haul networks."

Bay Networks data networking and broadband technologies are strategically positioned by their ability to handle the high-bandwidth and provisioning demands that will enable carriers to deliver new and innovative IP applications such as virtual private networks (VPNs), voice-over-IP (VoIP), multicast and Quality of Service (QoS) guarantees in a wireless environment, and Network Management. The Bay Networks / Unique Broadband Systems broadband wireless solution will be on display again in the Unique Broadband Systems' booth at the Wireless Cable Association Show and Symposium in Philadelphia, PA, July 8-10.

"Bay Networks expertise in both RF and internetworking technology coupled with our point to multi-point broadband platform enables us to offer a truly end-to-end high speed data access solution to a global marketplace," said Alex Dolgonos, president and chief executive officer of Unique Broadband Systems. "This well-oiled strategic relationship has made it possible for us to design an integrated end-to-end networking solution that is available now."

About Bay Networks Broadband Services

With more than 165,000 cable modems deployed around the world and over 3 million homes passed, Bay Networks is establishing a trend that allows a growing number of companies and individuals to access the Internet more quickly, easily and securely than many other solutions. As service providers begin to provide their customers with new services such as Internet access, video-conferencing and telecommuting applications, Bay Networks commitment to advancing this industry is evident, having emerged as the market leader in providing access solutions to this technology.

Bay Networks offers a cable modem that has an open scalable architecture ideal for small, medium and large networks. With a maximum of 10Mbps, Bay Networks' cable modems allow end users to work at a speed 50 times faster than conventional dial-up 28.8Kbps or even faster than 56K technology, commonly used in networks today.

About Unique Systems' Broadband Products

Unique Broadband Systems' strong commitment to research and development has resulted in its ability to offer a variety of broadband platforms to service providers on a global basis. These include a DAB platform (based on the Eureka 147 standard), DVB/HDTV compression equipment (DVB compliant) and PCS over LMDS transport platforms (patent pending). Unique Broadband Systems' solutions are protocol transparent and can be adapted to ATM, IP and MPEG-2 transport streams. Unique Broadband Systems' products (where applicable) can be designed and manufactured for all LMDS microwave spectrums. Unique Broadband Systems, with its leading edge technology will continue to bring to the marketplace, innovative products which will allow service providers to offer new services to their customers.

Unique Broadband Systems, Inc. (VSE:UBS) is a recognized world leader in the design, development and manufacture of broadband wireless and other solutions that serve the service provider, telecommunications and broadcast industries. With headquarters in Markham, Ontario, Unique Broadband Systems markets its products globally, providing 7x24 support. For additional information visit the Company's world wide web site at http://www.uniquesys.com

Bay Networks - Where Information Flows(tm)

Bay Networks, Inc. (NYSE:BAY) is a leader in the worldwide networking market, providing a complete line of products that serve corporate enterprises, service providers and telecommunications carriers. The company offers frame and ATM switches, routers, shared media, remote and Internet access solutions, IP services and network management applications, all integrated by Bay Networks' Adaptive Networking strategy. With headquarters in Santa Clara, California, Bay Networks markets its products and services around the world, providing 7x24 support coverage. For additional information visit the company's World Wide Web site at http://www.baynetworks.com or call 800-8-BAYNET.

This release, other than historical financial information, may consist of forward-looking statements that involve risks and uncertainties. These statements may differ materially from actual future events or results. For instance, factors which could cause results to differ from future events include the rate of adoption of new technology, competitive pricing actions and marketing programs, among others. Readers are referred to the documents filed by Bay Networks with the S.E.C., specifically the most recent reports on forms 10-K and 10-Q, which identify important risk factors which could cause actual results to differ from those contained in the forward-looking statements.

Bay Networks is a registered trademark of Bay Networks, Inc. Unique Broadband Systems is a trademark of Unique Broadband Systems, Inc. Other brand and product names are registered trademarks or trademarks of their respective holders.

    CONTACT: Bay Networks, Inc.       FitzGerald Communications, Inc.
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